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scooterscot
22nd September 2017, 22:23
Nothing to see here... say Moody's :D

So much for the strong economy... all for nothing when you've got a weak and weaker government.

Wait until bond holders start asking for more interest. Then the fun begins.



The UK’s sovereign rating was downgraded one level by Moody’s on Friday to Aa2, two notches below the highest opinion bestowed by the US credit rating agency, as Brexit pressures the country’s economic strength and the country’s debt levels rise.

Analysts with Moody’s blamed “increasingly apparent challenges” to policymaking in the wake of the Brexit vote and increased scepticism over the government’s ability to cut costs.

“Moody’s expects weaker public finances going forward, partly linked to the economic slowdown under way but also reflecting the increasing political and social pressures to raise spending after seven years of spending cuts,” said Kathrin Muehlbronner, an analyst with the rating agency.

Moody’s changed its outlook on the UK to stable. Along with the downgrade to the UK’s sovereign rating, Moody’s also cut its rating on the Bank of England to Aa2 from Aa1.

Fitch downgraded the UK on June 27, 2016, to double A, from AA+, and put the country on a negative outlook. It affirmed this rating in May, when the outlook remained negative, which reflected “heightened uncertainty” following the Brexit vote. The UK lost its Fitch triple A rating in 2013.

Moody’s last downgraded the UK on June 24 last year, to Aa1 negative. On its last report, published in July, the outlook remained negative. The key credit challenge was “the uncertainty as to whether the government can deliver a reasonably good outcome regarding the negotiations to leave the EU”.

S&P lowered its rating for the UK to AA in June 2016. In a report published in April this year, it said the outlook remained negative, citing continuing risks from the Brexit process.


source: https://www.ft.com/content/c464354c-105e-3f91-afda-fc32a28e96e9

northernladyuk
22nd September 2017, 22:43
Nothing to see here... say Moody's :D

So much for the strong economy... all for nothing when you've got a weak and weaker government.

Wait until bond holders start asking for more interest. Then the fun begins.



source: https://www.ft.com/content/c464354c-105e-3f91-afda-fc32a28e96e9

Enemies of the People.

scooterscot
24th September 2017, 10:01
Looks like No. 10 did not agree with Moody's after the speech. The great speech. The great big speech. You'll just have to wait and see. What changed? Nothing... expect a fully expensed trip to Florence.

Don't know how May is clinging on. A general election that is costing the economy and government wods of cash more than it would have without. Now UK debt is going to cost more as a result of the downgrading.

Moody’s hits back after Government dismisses UK credit rating cut as 'outdated' (http://www.independent.co.uk/news/uk/politics/brexit-florence-speech-uk-credit-rating-moodys-agency-eu-theresa-may-government-alastair-wilson-a7962916.html)


Downing Street is embroiled in a public spat over a Brexit-triggered cut to the UK’s credit rating, after its claim that the verdict is “outdated” was rejected.

The ratings agency Moody’s said No 10 was wrong to argue the downgrade would not have happened if the decision had been taken after Theresa May’s speech in Florence.

Instead, it stood by its cut – stating the speech had not changed the big picture of likely damage to the economy from Brexit, when the UK's debt reduction plans are already off course.

“I’ve read the speech and it doesn’t change our view at all,” said Alastair Wilson, the head of sovereign ratings at Moody’s.

“It certainly is not outdated. It reflects a medium term view, it's very much a forward looking view,” he told BBC News.

Meanwhile, Labour’s Treasury spokesman, Peter Dowd, said the downgrading was a “hammer blow” to the Government's economic credibility.

“For the second time under the Tories the UK's credit rating has been downgraded, and on this occasion citing their lack of faith in the Chancellor to meet his own spending targets as a result of unfunded spending commitments such as the deal with the DUP,” he said.

Liberal Democrat leader Sir Vince Cable said it was no coincidence the downgrading came alongside Theresa May's Florence address.

“Despite Theresa May's conciliatory tone we are no closer to knowing what our future relationship with the EU will be once any transitional deal expires,” he said.

“The warning that Moody's have issued by downgrading the credit rating is that the economy will be weaker once the transitional deal comes to an end.

“All May has done is simply delay the economic pain caused by an extreme Brexit.”

Moody's, one of the major ratings agencies, downgraded the UK to an Aa2 rating from Aa1 – having removed its top-notch AAA rating in 2013.

The other major agencies, Fitch and S&P, changed their ratings in 2016, with S&P cutting it two notches from AAA to AA, and Fitch lowering it from AA+ to AA.

Moody’s pointed to higher spending, running ahead of revenues – including the DUP cash – and said “any free trade agreement will likely take years to negotiate, prolonging the current uncertainty for business”.

No 10 tried to play down the downgrade, arguing it followed a meeting on 19 September – which, therefore, did not take into account the new Brexit policy.

“The Prime Minister has just set out an ambitious vision for the UK's future relationship with the EU, making clear that both sides will benefit from a new and unique partnership,” it said.

“The foundations on which we build this partnership are strong.”

Mr Wilson said he welcomed the speech “in some respects”, saying: “Recognition that transitional arrangements will be needed is a positive feature from the credit perspective.”

However, Moody’s said the “best-case scenario” for a post-Brexit trade agreement “would not award the same access to the EU single market that the UK currently enjoys”.

Bullseye

shaunbhoy
24th September 2017, 14:24
Don't know how May is clinging on.

I shall add it to the burgeoning list of things that you don't know.

In this field of endeavour you appear to be "going large"! Are you sasguru in disguise?

HTH

:laugh

scooterscot
24th September 2017, 14:41
Debt ridden basket case Britain stamping its little Brexit foot. It's beyond me why this woman had to hold that pointless speech in Florence. A Whatsapp group with her mates and other fanatic tories would have been more than sufficient..... It must have been the holiday she took in Italy ... she must have liked the place maybe.

Robinho
24th September 2017, 15:02
I see the Little Scotlanders are still tearful that they bottled their referendum :tantrum:

BR14
24th September 2017, 16:01
I see the Little Scotlanders are still tearful that they bottled their referendum :tantrum:

scooter does NOT speak for all scots, i can assure you :mad

scooterscot
24th September 2017, 16:34
scooter does NOT speak for all scots, i can assure you :ohwell

A tragedy in itself.

Incidentally - May does not speak for Brits. This politician in charge of a minority party outraged many in her speech when she claimed people of Britain spoke with one voice for Brexit. Guardian readers nearly consumed themselves with rage. Quite funny actually.

Whorty
24th September 2017, 16:43
Some utter tripe

<pointless emoji>
...

shaunbhoy
24th September 2017, 17:08
...

Oh goody......my pet stalker has turned up again.

:laugh :laugh:laugh:laugh:laugh :rollin:

northernladyuk
24th September 2017, 20:00
Debt ridden basket case Britain stamping its little Brexit foot. It's beyond me why this woman had to hold that pointless speech in Florence. A Whatsapp group with her mates and other fanatic tories would have been more than sufficient..... It must have been the holiday she took in Italy ... she must have liked the place maybe.

I shall add it to the burgeoning list of things that are beyond you.

Mordac
24th September 2017, 21:30
Nothing to see here... say Moody's :D

So much for the strong economy... all for nothing when you've got a weak and weaker government.

Wait until bond holders start asking for more interest. Then the fun begins.



source: https://www.ft.com/content/c464354c-105e-3f91-afda-fc32a28e96e9

Well if that's what it takes to make sure you stay where you are, I'm sure we'll cope...

Mordac
24th September 2017, 21:33
A tragedy in itself.

Incidentally - May does not speak for Brits. This politician in charge of a minority party outraged many in her speech when she claimed people of Britain spoke with one voice for Brexit. Guardian readers nearly consumed themselves with rage. Quite funny actually.

It doesn't normally take that much for Graun readers to become consumed with rage. Choking on their ethically-sourced granola is usually the best they can manage...

Mordac
24th September 2017, 21:35
Debt ridden basket case Britain stamping its little Brexit foot. It's beyond me why this woman had to hold that pointless speech in Florence. A Whatsapp group with her mates and other fanatic tories would have been more than sufficient..... It must have been the holiday she took in Italy ... she must have liked the place maybe.

The plotline of an episode of The Magic Roundabout would be "beyond you". Don't be so hard on yourself...

scooterscot
24th September 2017, 21:37
Well if that's what it takes to make sure you stay where you are, I'm sure we'll cope...

The ratings suggest you're far from coping :D

Mordac
24th September 2017, 21:45
The ratings suggest you're far from coping :D

It does seem you're far more troubled than we are, given that you're dribbling about it at every given opportunity. Have you tried therapy?

eek
25th September 2017, 06:39
It does seem you're far more troubled than we are, given that you're dribbling about it at every given opportunity. Have you tried therapy?

+1 for someone who lives in Germany (mind you a lot of Munich is a dump) I really can't see why he's so bothered about the situation in the UK. Mind you with AfD rising so much.....

shaunbhoy
25th September 2017, 07:17
+1 for someone who lives in Germany (mind you a lot of Munich is a dump) I really can't see why he's so bothered about the situation in the UK. Mind you with AfD rising so much.....

First they came for those that were different.............the incredibly dim-witted were not far behind!! :laugh

BR14
25th September 2017, 08:42
The ratings suggest you're far from coping :D
What do the officers think ?

northernladyuk
25th September 2017, 09:08
The plotline of an episode of The Magic Roundabout would be "beyond you". Don't be so hard on yourself...

Florence and the Magical Thinking Robot?

The_Equalizer
25th September 2017, 09:21
Florence and the Magical Thinking Robot?

Is this part of the automation we've been warned about?

scooterscot
25th September 2017, 13:10
+1 for someone who lives in Germany (mind you a lot of Munich is a dump) I really can't see why he's so bothered about the situation in the UK. Mind you with AfD rising so much.....

It's a laugh n' it?

Lambert Simnel
25th September 2017, 13:22
Not convinced by the downgrade at all (and that's despite thinking leaving the EU is an enormous own-goal for the economy). Do they really think that the BoE / UK government is less likely to pay up on gilts? Really? It feels more like they feel a need to publically recognise that Brexit is a bad idea from an economic standpoint (for whatever reason), and this is the main mechanism they have.

sasguru
25th September 2017, 13:36
Not convinced by the downgrade at all (and that's despite thinking leaving the EU is an enormous own-goal for the economy). Do they really think that the BoE / UK government is less likely to pay up on gilts? Really? It feels more like they feel a need to publically recognise that Brexit is a bad idea from an economic standpoint (for whatever reason), and this is the main mechanism they have.

I agree.
But, regardless, if the other ratings agencies follow, the UK government pays more on its debt.

BrilloPad
25th September 2017, 13:45
I agree.
But, regardless, if the other ratings agencies follow, the UK government pays more on its debt.

It can just print the money to pay the extra interest....

sasguru
25th September 2017, 14:03
It can just print the money to pay the extra interest....

You didn't really do a maths degree did you?

scooterscot
25th September 2017, 14:32
Not convinced by the downgrade at all (and that's despite thinking leaving the EU is an enormous own-goal for the economy). Do they really think that the BoE / UK government is less likely to pay up on gilts? Really?

The point is the UK going forward is now likely to be required to pay more on its debts, many of which are foreign owned. I've never understood how this helps, the economy needs to get on its feet and you charge more interest.

It'll not be long with people will look at 2008 until 2017 as the 'good years' with the Tories procrastinating with Brexit throughout.

BlasterBates
25th September 2017, 16:28
UK ordered to pay their bill (http://www.independent.co.uk/news/uk/politics/brexit-transition-period-single-market-eu-chief-negotiator-michel-barnier-talks-brussels-davis-davis-a7966616.html)

The UK is dragging its heels.

:D

sasguru
25th September 2017, 16:30
UK ordered to pay their bill (http://www.independent.co.uk/news/uk/politics/brexit-transition-period-single-market-eu-chief-negotiator-michel-barnier-talks-brussels-davis-davis-a7966616.html)

The UK is dragging its heels.

:D

Hard Brexit coming up !! Yay. :banana:

shaunbhoy
25th September 2017, 17:52
I've never understood

We know. Stop labouring the fooking point jellyhead!

:laugh